Fair Work Ombudsman
At a glance
- KLM Foods Pty Ltd
- $20,000
- 7
- MA000033
What happened
The Fair Work Ombudsman (FWO) has commenced legal action against three companies and two individuals related to alleged underpayments of workers at United Petroleum outlets in Tasmania and South Australia. In Tasmania, KLM Foods Pty Ltd, Vizaan Pty Ltd, and Loveleen Gupta are accused of underpaying four migrant workers from India and Bangladesh a total of over $20,000 between December 2020 and February 2021. Allegations include paying flat rates below minimum wage, failing to pay overtime and penalty rates, and requiring a worker to make a $6,353 cashback payment. In South Australia, Sai Enterprises Pty Ltd and Raman Monga are accused of failing to pay three workers accrued annual leave entitlements totaling $2,668 in 2021, and breaching record-keeping laws.
What was decided
The FWO has commenced legal actions against KLM Foods, Vizaan, Loveleen Gupta, Sai Enterprises, and Raman Monga. The FWO alleges multiple breaches of workplace laws, including underpayment of wages, failure to pay penalty rates and annual leave, providing false pay slips, and failing to keep proper records. The FWO stated that underpayments of visa holders are treated seriously and that employers must pay all entitlements. The cases are currently before the Federal Circuit and Family Court.
What it means for employers
Employers, particularly those using migrant workers, must ensure they are paying correct wages, including overtime and penalty rates. Maintaining accurate time and wage records is crucial, and providing false records to the FWO is unacceptable. Having written agreements for part-time staff is also a legal requirement.
What it means for employees
Employees, especially visa holders and young workers, should be aware of their pay entitlements and seek assistance from the Fair Work Ombudsman if they suspect underpayment or other workplace breaches. Providing false records to the FWO is unacceptable.
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